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A new $16 million electric substation that will improve reliability and handle the rising demand for power in a growing portion of the Town of Amherst is expected to open next month, National Grid officials said today.

The new substation, located at the end of Frankhauser Road near the intersection of the Millersport Highway and the Youngmann Expressway, is expected to improve the utility’s service in portions of Amherst that have experienced a 10 percent increase in electricity demand over the past five years.

As part of the project, National Grid added the substation and installed new power lines to improve the capacity of its electricity grid that serves Eggertsville, Snyder, North Bailey, Getzville, Swormville, East Amherst and Williamsville, National Grid said.

The new substation will be the 10th that National Grid operates in Amherst and it also will ease the demands on seven of the company’s other nearby substations that are at or near capacity. The substations reduce the voltage of the electricity carried on the utility’s high voltage lines so that it then can be carried on the lower-voltage feeder lines that run through neighborhoods, sometimes serving more than 1,000 customers at a time.

The new substation is part of a much larger, $1.6 billion program by National Grid to upgrade its electricity transmission and distribution network across the state over the next three years. The new substation was celebrated with a ceremony today with company and elected officials.